Demand Response has gained widespread policy support in Europe, reflected in robust regulatory initiatives, including the Third Energy Package, the Energy Efficiency Directive (EED) and the forthcoming Network Codes. In particular, article 15.8 of the EED stipulates that Demand Response and aggregators should participate alongside generation within the full range of organised electricity markets.
European and international experience over the past decade demonstrates that competition around consumer-centered aggregation services is the key enabler of Demand Response growth. These services can be provided either by an independent aggregator or a retailer, but it is important that these services can focus on the consumer’s willingness and ability to sell the value of his flexibility and can be unbundled from the sale of electricity.
One of the fundamental barriers to the growth of competition in Demand Response services in Europe is the lack of clear and fair roles and responsibilities of the market actors, which allow for direct access of consumers to a range of service providers.
This paper addresses the challenge of keeping the BRP whole after a demand response event as the critical enabler for Demand Response in Europe.
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